OKX to apply for Hong Kong VASP license under new regulatory regime as well as Type 1 and 7 licenses under Securities and Futures Ordinance
Announcement follows more than a year of preparation and organizational design by OKX
Hong Kong, 28 March, 2023 - OKX, the world's second-largest crypto exchange by trading volume and a leading Web3 technology company, today announced it has set up a Hong Kong entity for launching virtual asset services in Hong Kong, and intends to apply for the virtual asset service provider (VASP) licence under the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 which is scheduled to take effect on 1 June 2023, and the Type 1 & 7 licences under the Securities and Futures Ordinance.
The announcement comes after more than a year of preparation by OKX to fulfill anticipated regulatory requirements from organizational, product, security and compliance standpoints.
OKX Managing Director of Global Institutional Lennix Lai said: "Regulation and licensing are key to the future success of the crypto and Web3 sectors. At OKX, we see immense potential in Hong Kong, and are committed to investing in talents and working with regulators over the next five years to continue building the local ecosystem. Through the new VASP regime, the Hong Kong government has created a robust regulatory framework and the right conditions for Hong Kong to become a world-leading virtual asset hub. We're looking forward to applying for the relevant licences via our Hong Kong entity."
OKX General Counsel Bing Zhao, said: "OKX has an ambitious vision when it comes to pursuing licenses in relevant and appropriate jurisdictions, and we are committed to working with the SFC throughout the application process. We take security, custody, AML and compliance very seriously and are keen to demonstrate how we can meet and exceed the robust standards expected of virtual asset service providers under this regulatory regime."
Over the past several years, Hong Kong has become a destination for the crypto industry, and will be increasingly important for OKX and many other innovative firms, entrepreneurs and top talents as regulation develops.
OKX is sponsoring two industry conferences in Hong Kong in the coming weeks, the WOW Summit and the Hong Kong Web3 Festival and taking part in keynote and panel discussions to outline the company's growth plans.
This announcement is provided for informational purposes only. It is not intended to provide any investment, tax, or legal advice, nor should it be considered an offer to purchase, sell, hold or offer any services relating to digital assets. Digital assets, including stablecoins, involve a high degree of risk, can fluctuate greatly, and can even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances.